International Paper Co

Basic Materials
Paper
www.internationalpaper.com

Earnings Score
Moat Score
Safety Score

Market Cap $19.36B
PE 46
Debt $5.57B
Cash $1.16B
EV $23.77B
FCF $807.00M

Earnings

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Sales & Net Margins

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Earnings	$420.00M
EBIT	$512.00M
ROE	5%
ROA	2%
FCF	$807.00M
Equity	$8.63B
Growth Stability	23%
PE	46.1
PEG	-2.8
PB	2.24
P/FCF	23.99
P/S	1.04
Price/Cash	0.06
Debt/Equity	0.65
Debt/FCF	6.9
Net Margins	5%
Gross Margins	28%
Op. Margins	3%
Earnings CAGR	-9%
Sales Growth YoY	2%
Sales Growth QoQ	-1%
Sales CAGR	-2%
FCF CAGR	1%
Equity CAGR	9%
Earnings Stability	0.12
Earnings Growth YoY	-9%
Earnings Growth QoQ	-70%
Earnings CAGR 5Y	-16%

Sales CAGR 5Y	-3%
FCF CAGR 5Y	-26%
Equity CAGR 5Y	4%
Earnings CAGR 3Y	-2%
Sales CAGR 3Y	-2%
FCF CAGR 3Y	-19%
Equity CAGR 3Y	-3%
Market Cap	$19.36B
Revenue	$18.64B
Dividend Yield	3%
Payout Ratio	153%
Assets	$23.16B
Total Debt	$5.57B
Cash	$1.16B
Shares Outstanding	347.1M
EV	23.77B
Earnings Score	5%
Moat Score	53%
Safety Score	52%
Final Score	37%
Working Capital	2.29B
Current Ratio	1.53
Gross Profit	$5.23B
Shares Growth 3y	-3%
Equity Growth QoQ	0%
Equity Growth YoY	-3%

Assets & ROA

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Stockholders Equity & ROE

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International Paper manufactures packaging products and cellulose fibers. It accounts for roughly one third of the North American corrugated packaging market. Though it has operations in Brazil, Russia, India, and China, more than three fourths of its sales come from North America. International Paper serves a variety of end markets, including industrial, consumer products, and manufacturing.

SEC Filings

Direct access to International Paper Co (IP) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does International Paper Co compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of International Paper Co compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -9%

Stability 12%

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International Paper Co Discounted Cash Flow

Fully customizable DCF calculator online for International Paper Co .

Years

Calculation mode

= $8.7B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$807M	$816M	$826M	$836M	$846M	$855M	$865M	$876M	$886M	$896M	$907M	$9.1B
DCF		$742M	$683M	$628M	$578M	$531M	$489M	$449M	$413M	$380M	$350M	$3.5B
Value	$8.7B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	2%	4%	4%	10%	9%	5%	2%	9%	7%	2%	5%
ROA	-	8%	5%	5%	7%	7%	4%	6%	8%	3%	2%
ROE	-	23%	21%	33%	27%	16%	6%	19%	18%	3%	5%

Bad Net Margins (5.01%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	8.53	10.01	23.39	6.83	5.99	3.51	3.9	5.1	8.28	6.9
Debt over Equity	1.78	2.39	2.6	1.71	1.53	1.81	1.03	0.64	0.75	0.69	0.65
Growth Stability	-	-	-	100%	100%	72%	27%	100%	100%	23%	23%

Bad Debt/FCF ratio (6.9)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (0.65)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (23%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-5%	-6%	3%	7%	-4%	-8%	-6%	9%	-11%	-3%
Earnings YoY growth	-	71%	-2%	138%	-6%	-39%	-60%	263%	-14%	-81%	-16%
Equity YoY growth	-	-26%	12%	50%	13%	5%	2%	15%	-6%	-2%	4%
FCF YoY growth	-	-36%	3%	-58%	247%	41%	-1%	-36%	-16%	-44%	-26%